Urban Poverty in China

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Over the past two decades, China has experienced rapid economic growth, which has also brought about a rise in social and economic inequality. A nation that once operated under the principle of egalitarianism, China now struggles with a level of inequality that has surpassed most of its East Asia neighbours. In the 1980’s, poverty was a problem restricted mainly to rural areas, but recently it has forayed into urban areas as well. Since the mid-1990’s, urban poverty has grown at a very fast pace under the influence of globalization (Fulong, Webster, and Yuting 5). The economic restructuring of China is a huge contributor to this phenomenon. The Chinese government officially recognized urban poverty as a problem in 2001 through a report prepared by the State Council (Fulong, Webster, and Yuting 15). The report was also an acknowledgement that the nation faced a new challenge on the implementation of social policies.
Urban poverty arises from changes in the institutional models of crucial consumption areas such as housing, healthcare, and education combined with loss of urban space rights that occur during land appropriation. Despite the economic progress that China continues to experience, some negative externalities have arisen. The income gap continues to widen, there is a reduction in social welfare, and unemployment is on the rise (Fulong, Webster, and Yuting 21). There has been a surge in urban poor whose primary composition is unemployed individuals, laid-off workers, urban migrants, and retired labourers. The violation of their civil rights and the government’s inability to remedy the social problems in their areas further aggravates their economic inadequacy (Fei 17).
The urban poor in China are categorized into two: the o...

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... will fiercely fight against an increase in their contribution.
The leadership in China faces a huge challenge on how to steer the nation as it transitions from an investment and export driven economy to a consumption-driven one. The pledge to shift from emphasis in GDP growth to people–oriented growth requires development of target policies that are inclusive of all people’s needs, both rural and urban. It should establish a resource framework that focuses on social welfare programs such as healthcare and education which will empower the urban poor and reduce inequality. Beijing should strive to ensure its implementation of the 12th FYP goes on successfully; so far, its approach to boosting consumption has been quite successful. The transformative nature of this plan could be the key to tackling the rapidly growing problem of urban poverty and inequality in China.

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